Support for SMEs

Coronavirus Business Interruption Loan Scheme

The Coronavirus Business Interruption Loan Scheme (CBILS) is designed exclusively for SME businesses, and can give eligible businesses access to funding worth up to £5m pounds. This funding can take several forms, including loans, overdrafts, and more.

This package is offered by commercial lenders - including banks such as Barclays, Natwest, Metro Bank and more - but is backed by government.

The Coronavirus Job Retention Scheme allows eligible employers to apply for funding to pay any furloughed employees. Businesses can apply to cover up to 80% of an employee’s wages (up to £2500 per month) as well as National Insurance and pension contributions.

You’ll need to provide a fair amount of information, so make sure you have all the relevant documents and details to hand before you get started. You’ll also need to be registered for the Government’s online PAYE system to use this support mechanism.

However, it takes only six working days for the funding that you apply for to arrive in your bank account once the claim has been verified by HMRC.

Deferred VAT payments must be made by 31st March 2021, but these payments will not be subject to late charge payments or interest. Any businesses that have a Direct Debit payment in place for VAT have been advised to contact their banks to cancel this payment.

Additionally, businesses can choose to defer the second self-assessment tax payment - usually due on 31st July - can now be deferred until 31st January 2021. There’s also the option to split this self-assessment tax payment over the year, to help with budgeting and cashflow. You can find out more about this service here.

Businesses need not apply for this support mechanism; local authorities will administer this discount. You can read more here.

This support mechanism is only available to businesses in England. Welsh, Scottish and Northern Irish businesses should click on these links.

Business support grant funds (England only)

The government has published guidance on two loan funds and the eligibility criteria for them. This guidance covers the Small Business Grant Fund (SBGF) and the Retail, Hospitality and Leisure Grand Fund (RHLGF).

The first (SBGF) of these two grants is a payment of £10,000 to all eligible businesses for Small Business Rates Relief (SBRR) or Rural Rates Relief (RRR), as appropriate. Under the second (RHLGF), eligible businesses will receive cash grants of either £10,000 or £25,000 per property.

Businesses which are eligible for these support mechanisms will be contacted by their local authorities. For more detailed information, you can read the guidance in full here.

Support for the self-employed

The government has also announced support measures for the self-employed, with workers eligible to claim for up to 80% of their trading profits up to a maximum of £2500 per month, available for three months (with the potential for extension).

The following businesses are eligible, and will be contacted throughout May 2020 by HMRC:

Submitted a self-assessment tax return for the 2018-2019 tax year

Have traded in the 2019-2020 tax year

Are trading when you apply, or would be except for coronavirus

Intend to continue to trade in the tax year 2020 to 2021

have lost trading profits due to coronavirus

Have trading profits not greater than £50,000 in the 2018-2019 tax year, nor average trading profits greater than £50,000 across the 2016-2017, 207-2018, and 2018-2019 tax years.

Other sources of support

Institutes and bodies across the country are issuing the latest advice and guidance around coronavirus. The Confederation of British Industry (CBI) has published a comprehensive FAQ for businesses to help them assess their circumstances, available here.

Similarly, the Federation of Small Businesses (FSB) has issued guidance and advice for small businesses and the self-employed. As well as a general FAQ, there’s a host of resources including free webinars and useful links to other resources (some provided by the FSB and some provided by other organisations).

The FSB has also provided a comprehensive list of resources to help business owners, employers and employees to positively manage their mental health during what is a confusing and stressful period. You can find all of the above on the FSB website.

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